Flutter Entertainment PLC (LSE:FLTR), the UK-based gaming group that owns FanDuel, could see a positive impact on its US division's profitability trajectory in the next year, according to a note from Jefferies, which assessed the 'read-across' from results of competitor DraftKings,
Specifically, the investment bank said that "discipline" from DraftKings and another competitor, BetMGM, was likely to benefit FanDuel.
Flutter's US division has guided for profitability in America this year, earlier than peers, and consensus estimates for the business continue to creep higher, Jefferies said.
Flutter could benefit from the promotional intensity declining in more mature US states, investors were told. Jefferies also hailed positive signs in the newly legalised states of Maryland and Ohio.
The call with DraftKings also suggested that there is a possible 2024 New York online casino legalisation, which could be a material cross-sell opportunity from its existing sports base.
At 12.15 pm, shares in Flutter, which owns both Paddy Power and Betfair here in the UK, were trading sideways at 1,3670p. Jefferies rates the stock a 'buy' up to 15,000p.
Of the 26 banks and brokerages following flutter, 20 are positive on the stock. The consensus price target is 14,217p.